Management Report and Parent Company Financial Statements 2015 generali.com 184th year Management Report and Parent Company Financial Statements 2015 Assicurazioni Generali - Management Report and Parent Company Financial Statements 2015 Corporate Bodies as at 28 April 2016 Chairman Gabriele Galateri di Genola Deputy Chairman Francesco Gaetano Caltagirone Clemente Rebecchini Group CEO Managing Director Philippe Donnet Members of the Board of Directors Romolo Bardin Ornella Barra Paolo Di Benedetto Alberta Figari Diva Moriani Lorenzo Pellicioli Roberto Perotti Sabrina Pucci Paola Sapienza Board of Statutory Auditors Carolyn Dittmeier (chairwoman) Antonia Di Bella Lorenzo Pozza Francesco Di Carlo (substitute) Silvia Olivotto (substitute) General Manager Alberto Minali Secretary of the Board of Directors Giuseppe Catalano Company established in Trieste ISIN: IT0000062072 in 1831 - Share Capital Reuters: GASI.MI € 1,556,873,283.00 fully paid-up. Bloomberg: G:IM Registered office in Trieste, Piazza Duca degli Abruzzi, 2. Tax code and Company Register no. 00079760328. Company entered on the Register of Italian Insurance and Reinsurance Companies under no. 1.00003 - Parent Company of the Generali Group, entered on the Register of Insurance Groups under no. 026. Certified email (Pec): Please see the section assicurazionigenerali@pec. at the end of the report generaligroup.com for more contacts 2 Assicurazioni Generali - Parent Company Financial Statements Corporate Bodies as at 17 March 2016 Chairman Gabriele Galateri di Genola Our idea Insurance has been a great invention of insurance of modern times. It was more of an Deputy Chairman Francesco Gaetano Caltagirone intellectual rather than a commercial Clemente Rebecchini innovation, which has strongly contributed to the development and wellbeing of the Group CEO Managing Director global economy and society. The insurance Philippe Donnet business is strictly connected to the major issues of the contemporary world, which Members of the Board of Directors Ornella Barra have an increasingly global and complex Flavio Cattaneo dimension. Alberta Figari Jean-René Fourtou Lorenzo Pellicioli Telling one year of business of one Sabrina Pucci of the major insurance groups worldwide Paola Sapienza can provide a useful contribution Board of Statutory Auditors to understand the status quo, interpret Carolyn Dittmeier (chairwoman) its underlying trends and get into Antonia Di Bella its complexity. Once again this is done Lorenzo Pozza Francesco Di Carlo (substitute) through a clear and user-friendly publication, Silvia Olivotto (substitute) rich in both numbers and images, showing the pictures of our employees and staff General Manager Alberto Minali members worldwide. You can see them in their daily activities against the Secretary of the Board of Directors background of the macro-trends mostly Giuseppe Catalano influencing our business and our clients’ needs: climate change, urbanisation, demographic evolution etc.. Company established in Trieste ISIN: IT0000062072 in 1831 - Share Capital Reuters: GASI.MI This is the key message: an organization € 1,556,873,283.00 fully paid-up. Bloomberg: G:IM like ours can confidently look at the future Registered office in Trieste, Piazza Duca degli Abruzzi, 2. only thanks to its people and their ability Tax code and Company Register to innovate. no. 00079760328. Company entered on the Register of Italian Insurance and The rest also counts, Reinsurance Companies under but this is more important. no. 1.00003 - Parent Company of the Generali Group, entered on the Register of Insurance Groups under no. 026. Certified email (Pec): Please see the section assicurazionigenerali@pec. at the end of the report generaligroup.com for more contacts 3 Assicurazioni Generali - Management Report and Parent Company Financial Statements 2015 What’s inside Letters from the Chairman 6 and the Group CEO Company Highlights 8 Our history 10 Our Group 13 14 2015 Key facts 22 Our value creation process 23 External context 31 Vision, Mission and Values 33 Our strategy 34 Our governance and compensation policy 44 Our business model Management Report 49 50 Part A – Result of operations 87 Part B – Risk report Appendix 99 to the Report Parent Company 106 Financial Statements Parent Company 109 Balance sheet and Profit 111 Balance Sheet and Loss account 125 Profit and loss account Notes to the Parent 135 Company Financial 137 Foreword Statements 138 Part A – Summary of significant accounting policies 145 Part B – Information on the Balance Sheet and the Profit and loss account 204 Part C – Other Information 4 Assicurazioni Generali - Index Cash Flow statement 209 Appendices to 215 the Notes Statement relating to 289 the solvency margin Securities and urban 293 real estate on which revaluations have been Attestation of the 299 Financial Statements persuant to the provisions of Article 154-bis of Legislative Decree 58 of February, 1998 and Consob regulations 11971of May 14, 1999 Board of Auditors’ 302 Report Independent Auditor’s 314 Report and Actuary’s Report 5 Assicurazioni Generali - Management Report and Parent Company Financial Statements 2015 Letter from the Chairman and the Group CEO 2015 has been a rewarding yet also innovative year for Generali and its stakeholders. The year witnessed the beginning of a new cycle which started with the presentation of the strategic plan based on key elements which are simultaneously distinctive, simple and ambitious. We announced our intentions to focus both on cash generation and dividend growth, as well as position ourselves as a European leader in insurance retail, becoming simper and smarter in offering products and services. We furthermore planned significant albeit selective investments in technology and data analytics. These are key elements to gain leverage in the future of our industry which is all the more dependent on long-term and interactive partnerships with clients and the ability to listen to them. In terms of results, in line with our strategic targets, we closed 2015 with a significantly increased net profit of over 2 billion Euro and an operating profit of over 4.7 billion. The written premiums recorded a total income of over 74 billion Euro. Thanks to these results we are able to distribute a dividend of 72 Euro cents per share to all our shareholders, increased by 12 cents (+20%) compared to the previous year. 2015 was also an important year considering the business results achieved, representing key turning points for us and for our clients, laying the foundation for further progress of the Group among the world leaders in our sector. In Italy we have now completed the integration process which began in 2013, concluding the most extensive reorganisation ever tackled in Europe in the insurance sector. We simplified the existing brands and unified the business structures across the country, creating a single technological platform for the Life and P&C portfolio, guided by the same simplicity principle which is the guiding force of our global and local initiatives. Likewise in Germany we launched a plan aligned within the Group strategy, based on a leaner organization and governance which presents a new Life business approach and a strong focus on smart insurance related to telematics, domotics and the Vitality project. In France, in 2015 we began to reap the benefits from the significant turnaround process started in 2013, with a positive set of results in the different business sectors, confirming the “Customer Centric” reorganisation originally launched. 6 Assicurazioni Generali - Letter from the Chairman and the Group CEO We also strengthened our position in Central Eastern Europe, where we are now among the major insurersin the region, acting as leader in most of the countries we operate in. Technology and the ability to be innovative became key elements in responding to the new trends of the insurance market. In this regard, we are implementing a strategy aimed at exploring new opportunities, identifying particularly dynamic companies, starting long-lasting partnerships and collaboration schemes with centres of excellence. To mention just a few, the acquisition of MyDrive, contractual agreements with Obi Worldphones and Microsoft, but also the three- year partnership with the United Nations’ Abdus Salam International Centre for Theoretical Physics. This is a new approach to the regular modus operandi in our sector which expands business horizons and industrial prospects in an ever distinctive backdrop of macro-economic trends. The demographic, social, environmental and climate changes as well as challenges in terms of welfare, new technology and volatile and uncertain fi nancial conditions, now represent the normal operating fi eld for a global player such as Generali, especially after closing the process of focusing on the insurance core business in 2015. The role of an insurance group is now even more focused on contributing to growth, development and society’s welfare, pursuing the goal of sustainability in terms of business and fi nance from a social responsibility angle and thus looking at things with the long-term perspective, envisioning the future and well-being of the generations to come. We are now even more aware that we achieved these results thanks to the commitment and the engagement of all our employees, distributors and collaborators, our much appreciated partners, to whom we would like to express the most sincere gratitude. Gabriele Galateri di Genola Philippe Donnet 7 Assicurazioni Generali - Management